Broker says error from Deputy Prime Minister and Housing Secretary is 'hard to believe' and she should be removed from government over affair
Deputy prime minister Angela Rayner is in hot water after acknowledging she paid insufficient stamp duty on her £800,000 flat in Hove, East Sussex.
The issue arose when it was revealed that she had classified the property as her main residence, which resulted in a lower tax bill. Legal advice at the time indicated she was eligible for the standard rate, but subsequent expert counsel found this advice to be incorrect due to the structure of a trust established for her son.
Rayner and her ex-husband transferred ownership of their Greater Manchester home to a trust in 2023 to provide for their disabled son. She then sold her share in the property, using the proceeds to purchase the Hove flat with a mortgage in May 2025. At the time, she relied on legal guidance that suggested she was not required to pay the higher stamp duty surcharge for second homes.
However, after further review, tax specialists advised that the trust’s provisions meant she should have paid the additional charge. The difference could amount to as much as £40,000. Rayner has now referred herself to the prime minister’s ethics adviser and is working with HM Revenue and Customs to resolve the matter.
BREAKING: Angela Rayner admits she didn't pay enough tax on flat purchase.
— Sky News (@SkyNews) September 3, 2025
The Deputy Prime Minister said has referred herself to the standards watchdog while speaking to Sky's @BethRigby on the Electoral Dysfunction podcast.https://t.co/TfIm6OkDuU
📺 Sky 501 & YouTube pic.twitter.com/bpY3Hhyj0y
“Subsequently to that, with all of the media reports that have been coming out, I took expert counsel advice on all of my affairs to ensure that everything was done proper and that expert counsel said that the advice that I received was inaccurate because of the trust,” Rayner said.
Anthony Emmerson, of Trinity Financial, reacted with disbelief to the explanation and told Mortgage Introducer that Rayner's head should roll given the hyprocrisy involved.
"We find it hard to believe that the deputy PM who is in charge of housing and surrounded by the amount of high level advisers and lawyers could not obtain the correct tax advice on the amount of stamp duty to pay. The fact that she was transferring a property into a trust also calls into question the reason she was doing so as well. She was clearly also trying to prevent future inheritance tax liability via that Trust given the rules that their government are bringing in. Her actions again calls back into question the sale of her prior residence which she claimed to be her main residence and did not pay capital gains tax on.
"Her mantra of asking those with the broadest shoulders to pay their share clearly does not apply to herself, and she should be removed from government for it."
The deputy prime minister has stated that she is rectifying the situation at the earliest opportunity and regrets the mistake. She has not ruled out resignation if an investigation finds she breached the ministerial code. Labour leader Keir Starmer has publicly supported Rayner, stating that she has provided detailed explanations and acted transparently.
The situation has drawn attention due to her previous calls for resignations over tax matters and the government’s expected changes to property taxation. It prompted other mortgage professionals to also question Rayner's integrity and highlight how complex and unnecessary they believe the additional tax is.
Adrian Anderson, of Anderson Harris, said it was an extremely surprising position for a housing minister to put themselves in. "It just demonstrates how expensive that surcharge is if she went to such lengths to try and avoid it. And maybe this demonstrates to her and her party how absurd the additional rate of tax is."
Rayner provided the Guardian with a detailed statement, which reveals her family situation and attempts to explain how she ended up underpaying. She will now face intense scrutiny and a fight for her political career but for some brokers, the issue speaks to everyone. Adam McGrath, of Mortgage Search, said the whole affair just confirms the need for specialist advice, regardless of your job or stature.
"This case really underlines how complex and open to interpretation the current stamp duty rules can be — even experienced professionals can reach different conclusions." he said. "While individuals must of course ensure their affairs are correct, this highlights the importance of clear, specialist advice, and perhaps a need for the system itself to be made simpler. The aim should be to reduce the chance of mistakes for everyone, not just high-profile cases."
Nicholas Mendes, mortgage technical manager at London broker John Charcol, added: "Stamp duty is notorious for being complex, particularly when additional properties or trusts are involved. Even with expert legal advice, it’s not uncommon for buyers to end up paying the wrong rate. This case is a reminder that while the rules might trip up an £800,000 buyer on the front bench, the same mistakes can just as easily affect everyday buyers - only without the newspaper coverage. Getting specialist advice early on is the best way to avoid both unnecessary costs and unwanted attention.”
Gerard Boon, managing director at Boon Brokers, echoed Mendes's sentiment, stressing that "guidance on stamp duty liability is a fundamental part of property transactions."
"From a housing and consumer perspective, this misconduct actually underscores a key point: even small errors in property advice can have major financial consequences - in this specific case, a £40,000 miscalculation," he said. "While Angela Rayner is fortunate enough to financially recover, most ordinary buyers don’t have the luxury of political office, instead they rely on accurate advice and transparency to avoid unexpected costs.
"Unavoidably, the political fallout will be hard to ignore. While Rayner appears to be correcting the error by ‘explicitly’ referring herself to the ethics adviser and settling with HMRC, questions about judgment and oversight have to be asked, particularly when she has previously campaigned on property tax fairness.
"But for first-time buyers and those navigating mortgages, it’s a stark reminder that trusting your advisers - and checking the numbers yourself - matters as much as ever."
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